Gartner Research

Top 10 Reasons Why Benchmarks Fail in Outsourcing Deals

Published: 23 March 2007

ID: G00147145

Analyst(s): Helen Huntley

Summary

Benchmarks in outsourcing contracts are prone to failure, largely due to the lack of clarity about timing, funding, metrics, methodology and what actions will be taken as a result of the analysis. We provide the top reasons why benchmarks fail in outsourcing and how to avoid these failures.

Table Of Contents
  • Overview
  • 1. Failure to Describe Benchmark Coverage Areas
  • 2. Failure to Describe When the Benchmark(s) Will Be Executed
  • 3. Failure to Stipulate How Often Benchmark(s) Will Be Conducted
  • 4. Failure to Define What Calculated Metrics Will Be Used for Comparison
  • 5. Failure to Stipulate Benchmarking Methodology and Provider Selection Criteria
  • 6. Failure to Define How Peers Will Be Selected for Comparison
  • 7. Failure to Identify Realistic Benchmarking Comparisons
  • 8. Failure to Stipulate How Benchmarks Will Be Managed and Who Will Do the Data Collection
  • 9. Failure to Define Who Will Fund the Benchmark(s)
  • 10. Failure to Define How Benchmarking Results Will Be Used in the Outsourcing Deal

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